If you’ve been following the trends in LA Real Estate you may be hesitant to look into real estate investing. Headlines have hopeful homebuyers wondering if it’s a bad time to buy, with interest rates nearly double what they were two years ago. The simple truth is that the historically low interest rates of 2020 and 2021 may never be back; waiting for the return to a 3% rate is a risky move, as experts say we may not see something that low again for decades.
Determining when you invest in LA real estate based on interest rates alone is not a smart move. Instead, you should determine your needs and your budget and move froward in the search for homes for sale in Los Angeles based on those factors you can control. Contact us any time to learn more about finding the right property for you in Los Angeles.
Your Needs Matter More than the LA Real Estate Market
You’ve likely heard the advice to control what you can control, and not worry about the rest. This is a smart tip when applied to LA real estate because there are many factors beyond your control that can lead you to hesitate and miss an opportunity.
The LA real estate market will shift, sometimes offering a more favorable scenario than others. However, the real factors that should determine when you buy a new home are your needs and your budget.
The affordability of a home is not determined by your interest rate, but by whether the payment fits your life and the house meets your criteria. Refinancing in the future is always an option, but paying a higher interest rate for a home you love and can afford is already a great deal.
Good Reasons to Move
Moving to take advantage of amazing interest rates is great, but there are many more reasons to move that make even more sense. If you are currently a homeowner, you likely have a substantial amount of equity you can leverage to offset the higher interest rates, and if you are not you may be surprised to find what you can be approved to borrow.
1. You want to be closer to the beach
Moving closer to the beach is a dream of many Southern Californians. Even if the monthly mortgage for your beach home may be higher than it would have been 2 years ago, this is a reliably profitable investment because the demand for property by the beach remains high in all markets.
2. You have outgrown your home
When your current home no longer meets your needs, it’s almost always time to move. We can help you find something that meets your needs and your price point, regardless of market conditions. Some of the reasons you might find yourself outgrowing your home include:
- Children growing up and wanting their own entertaining space
- Needing additional bedrooms or bathrooms
- Beginning to work from home and needing a dedicated office space
3. Downsizing would make your life easier
Much like outgrowing your home, sometimes the size of your home becomes too big for your needs. If you have recently become an empty nester or simply want to decrease the amount of time and money you invest in maintaining your home, downsizing can be a great solution to lower your stress and help you love your home again.
4. It’s time to be closer to work
The time you spend commuting to work has been proven to make a major impact on your quality of life. If your commute is long and you want to change, let’s talk about what we can find that is closer to the office. Take back hours each week by minimizing your commute.
5. Your household has changed
Household changes can pop up at any time. Perhaps you are going through a divorce, an adult child needs to move back home, or it’s time to welcome in your aging parents. Whatever the reason, when your household changes it is often time to change your home.
6. Your health status or mobility has changed
Have you recently gotten a health diagnosis that will impact your lifestyle or mobility? Look ahead to aging in place or accommodating changes in your health by choosing a home that will make your life more comfortable.
7. You fell in love with a new neighborhood
While it may not be a need, there is no reason you can’t move just because you found a new place you love. Los Angeles is a diverse area with something for everyone, making LA real estate some of the most popular there is; if there is a part of the city you’ve always dreamt of living in, let’s consider how we can help you reach that goal.
To begin the search for your home in Los Angeles, or for any information on LA real estate, contact us any time.